Answer:
Alima will pay 40 dollars in management of her fund.
Explanation:
A basis point is equivalent of 1/100th of 1%
an expense ratio of 8 baiss point will be equivalent to 0.08%
0.08/100 = 0.0008
The managenement will get this as expense ratio while invesotr will see their investment yield decreases for this amount.
On a yearly basis Alima will pay $50,000 x 0.0008 = 40 dollars
